Endorsement Split Dollar
Endorsement split dollar plans are designed to provide valuable key person death benefits to a business and personal death benefit protection to a key employee's family.
A life insurance policy is purchased and the premium payments and policy benefits are divided between two parties - usually a business and an employee.
Split dollar is a method of buying life insurance, so a need for life insurance should always exist before a split dollar arrangement is implemented.
This content is designed for use by financial professionals. Consumers may learn more about products and services on principal.com.
Benefits to the employer
- The employer may have access to the policy's cash value.
Benefits to the employee
- Split dollar life insurance can provide needed insurance protection at a reduced current out-of-pocket cost.
- Split dollar can be combined with a cross-purchase buy-sell agreement to even out the current premium costs in the case of a wide age variable among the owners.
Key materials listed below. Refer to the Advanced Marketing Sales Library for more information from Pentera Group, Inc. on advanced marketing topics.
Endorsement Split Dollar Sample Agreement (BB10998)
Endorsement Split Dollar (Tax Exempt) Sample Agreement (BB11008)
Endorsement Method, Employer-Pay-All Sample Agreement (BB11003)
The subject matter in this communication is provided with the understanding that Principal® is not rendering legal, accounting, or tax advice. Your client should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements.